Morgan was quick to act on the open space, as Tokyo office vacancies continue to drop to record lows; the investment bank reportedly paid $444 million for the 22-story building.
February 19. 2008 3:39PM
Morgan Stanley on Tuesday announced the purchase of Citigroup Inc.'s Tokyo offices, marking the latest foray by U.S. financial firms into the lucrative Japanese real estate market.
Morgan was quick to act on the open space, as Tokyo office vacancies continue to drop to record lows. The Manhattan-based company, which reportedly paid $444 million for the 22-story building, said it plans to continue investing in Japanese real estate, less than one week after cutting 1,000 jobs in its U.S. and U.K. mortgage units.
Though nearly $20 billion in U.S. dollars has gone into Japan's real estate over the past few years, Citigroup said selling the Tokyo space was an effort to counter hard times on the home front. The bank, which has faced a series of layoffs and writedowns in the midst of the ongoing subprime mortgage crisis, is hoping to reduce risks associated with holdings assets.
Manhattan-based Citigroup will sell and lease back its Tokyo headquarters, which it has been considering selling since last year.
Morgan and Sapporo Holdings, one of the largest brewers in Japan, agreed last year to form an alliance to manage and buy real estate and the investment bank plans to buy a 15% stake in Sapporo's Yebisu Garden Place shopping and office complex in Tokyo. Last year, Morgan purchased 13 Japanese hotels from All Nippon Airways Co.
Citigroup is reviewing the size of its operations in Japan, where it employs about 16,000 people and operates a bank as well as consumer finance, asset management and principal investment units.
Source: http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20080219/FREE/774717493/1052/newsletter01
※ 来源:Unknown Friends - 未名交友 http://us.jiaoyou8.com ※